Take-Two has started layoffs, mainly focused on the company’s operations and publishing

Rockstar’s parent company, Take-Two, which is also the publisher of the “GTA” and “Borderlands” series of games, has confirmed recent reports about layoffs, stating that this is a “necessary action” for the company’s continued success.

Earlier, Bloomberg journalist Jason Schreier posted on social media that Take-Two had conducted layoffs across different subsidiaries, including Private Division, which has released games such as “The Outer Worlds” and “Kerbal Space Program.”

In a statement to PC Gamer, Take-Two acknowledged the layoffs but did not reveal how many employees or subsidiaries/departments were affected.

We can confirm that there have been targeted reductions in our US teams, primarily in corporate operations and label publishing, which will better align our organization with our long-term priorities. We continue to make strategic investments in our talent and technology to deliver our long-term pipeline, and the impact of these changes on our US development teams has been minimal.

Outside of the US, we have begun procedures in compliance with local law that we anticipate may result in similar reductions. Take-Two has experienced exponential growth in recent years, and we are taking these necessary steps to position the company for another extended period of success.

Take-Two actually hinted at the possibility of layoffs during its Q3 2022 earnings call last year. The company stated that it might need to make cuts of up to $50 million in costs, which could affect “personnel, programs, infrastructure and other areas, as well as publishing and operational functions.”